Two funds were created in 2019 under a new agreement on Kumtor mine, and Centerra Gold donated more than $ 67 million to them. The main part of the funds was to be spent on environmental protection. But there are no reports on their spending, because there were no measures. Environmental issues were forgotten as soon as the money arrived in the accounts.
Regional development and nature protection
After approval of the new Cabinet of Ministers, the Government of Mukhammedkaly Abylgaziev decided to scrupulously study the agreement on development of Kumtor mine. Negotiations with the Canadian partner continued for a long time, and the parties came to an agreement in August 2019.
The Cabinet of Ministers of Mukhammedkaly Abylgaziev agreed on increase in funding of projects in Kyrgyzstan by $ 63 more million.
Two funds were created according to the new agreements — nature development and social partnership for development of regions. Centerra allocated $ 50 million at a time to the first one to create the Nature Development Fund, and over the next years, until the end of the mine’s life, it has to transfer $ 3.7 million annually, including, by the way, 2017 and 2018. Thus, by the beginning of 2020, Kumtor has transferred $ 61.1 million to solve the internal environmental problems of the republic.
Ulugbek Arstanbaev became the head of the first fund, and the former Minister of Finance Adylbek Kasymaliev — the second. It is interesting that the both organizations are registered at the same address: Chui Avenue, 106. The Ministry of Economy is also located there.
Hospitals at someone else’s expense
Not much is known about the activities of the Social Partnership Fund for Regional Development. There are reports that Centerra transferred the first $ 5.6 million to it in 2019. Other $ 9.9 million was received in March 2020. Then, 0.4 percent of the gross income of Kumtor Gold Company should be transferred to the fund’s accounts every year that will amount to approximately 190 million soms annually.
The head of the Fund, Adylbek Kasymaliev, announced that a selection committee would distribute the funds.
Priority will be given to investment projects aimed at development of production and creation of jobs, primarily in remote and hard-to-reach regions, such as Batken.
The Fund was officially registered only in February 2020, and therefore dreams of investment projects were not destined to come true.
The coronavirus pandemic has come to Kyrgyzstan, and an urgent need to build hospitals emerged.
As a result, by the decision of the Fund’s Supervisory Board, money from its accounts was spent on repair and construction work. Simply put, construction of new hospitals in the regions began at the expense of the money.
According to the State Agency for Architecture, Construction, Housing and Communal Services, 319.6 million soms were allocated from the republican budget for construction and overhaul of medical institutions under the item «Capital investments» and the Social Partnership Fund for Regional Development. Work was carried out at 14 healthcare facilities at the expense of these funds.
Neither nature, nor money
It is impossible to find out how much money from Kumtor has already been spent. If it is more or less clear with the Social Partnership Fund, then it is complicated with the protection of nature. In October 2019, the Government announced formation of a committee for selection of projects and programs for protection of the environment and preservation of natural resources. The projects were planned to be financed by the Nature Development Fund. Since then, there have been no reports of its activities.
An official request from 24.kg news agency, sent to the Fund on December 21, 2020, was left unanswered.
However, the 24.kg news agency team has a provision on the use of funds on hand received from Kumtor Gold Company CJSC. According to it, money to both Funds are transferred to the account of the Central Treasury of the Ministry of Finance in the National Bank.
At the same time, the money of the Funds are used to finance specific activities and projects aimed either at the development of regions or at protection of the environment. No other options are provided.
In total, $ 65.1 million was transferred from the two Funds to the Treasury accounts that is 4,546.2 billion soms.
Other $ 11.2 million was transferred to the budget revenue from the Social Partnership for Regional Development Fund in 2020. The sum appeared in the state treasury in May 2020 in the amount of 869.6 million soms.
«At the expense of the Funds, Aiyl Bank OJSC and RSK Bank OJSC were allocated 500 million soms (250 million soms to each bank) for further financing of business projects for regional socio-economic development in December 2019. The balance of 4,915.7 billion soms in 2020 was directed to financing of the current expenditures of the republican budget of Kyrgyzstan to ensure fulfillment of the social obligations of the state,» the Ministry of Finance commented on the expenditures.
It turns out that we have already spent the Kumtor’s money without allocating a single tyiyn to improve the environment. In addition to the money of the two Funds, the Government of Kyrgyzstan also spent more than $ 300 million in 2020 in form of donor assistance to support the budget, that is, to finance the same social obligations of the state.
